Where's that food shortage Warmists are always predicting?
A lot of grain silos are so full there is no room for more. Many grains are in glut (oversupply), driving the prices down -- and causing farmers to switch to other crops
United States farmers have planted their smallest winter wheat crop in 108 years, according to the US Department of Agriculture (USDA).
Its monthly World Agriculture Supply and Demand Estimates (WASDE) revealed winter wheat plantings were down 1.5 million hectares to just over 13 million hectares.
The report also contained projections of cuts to US and global soybean production as well as lower-than-expected ending stocks, which sent Chicago Board of Trade March soybean contracts soaring to a three and a half week high.
The USDA's latest report echoes similar reports from global agencies detailing the globe's enormous stocks of grain, with wheat stocks tipped to reach levels not seen in three decades.
"Global wheat supplies for 2016/17 are raised 1.3 million tonnes on a production increase that is only partially offset by lower beginning stocks," the report said.
"The largest increases are for Argentina, Russia and the European Union."
The cuts to soybean production and wheat plantings reflect farmers' moves to plant higher value crops during a period of major over-supply, according to Chicago trader and PRICE Futures Group vice-president Jack Scoville.
"I think a lot of producers are very unhappy with the wheat price here in the United States.
"They're looking for alternatives, and given where the reductions are out in the great plains, I'm sure we're going to hear about more cotton in the coming growing season, this US summer, and also maybe some more soybeans and perhaps a little bit more sorghum."
Mr Scoville said despite a good session on the CBOT, wheat, corn and soybean prices were all trading near four or five year lows.
"That's creating quite a problem for producers, they really need more money than that."
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